IMF cuts PHL growth outlook to 5.4%

The International Monetary Fund (IMF) has revised its economic growth projection for the Philippines this year to 5.4%, down from its previous estimate of 6.9%. The downgrade is due to a resurgence in COVID-19 cases and stricter quarantine measures imposed in Metro Manila and nearby provinces.

According to IMF Division Chief Thomas Helbling, the second wave of infections peaked in April and has slowed economic recovery in the first half of the year, though there are hopes for an improvement in the latter part.

The new projection is less optimistic than the government's target of 6-7% growth for 2021.